SAFEs vs. Equity (when and why!) + Legal Office Hours
I’ve lost track of how many “SAFE explainers” I’ve seen over the years…especially ones written for investors.
And honestly, that’s kind of the point.
If investors still need guides to understand the nuances of different SAFEs, conversion mechanics, caps, discounts, and downstream effects, then it’s unrealistic to expect founders to feel fully comfortable choosing between SAFEs and equity without help.
This comes up constantly in my work with founders.
They’re told SAFEs are “simple.”
They’re told equity is “too early.”
They’re told one structure is founder-friendly and another isn’t.
Then six to eighteen months later, they’re dealing with confusion, messy cap tables, awkward investor conversations, or legal cleanup they didn’t see coming.
So instead of another theoretical breakdown, I’m hosting an open conversation with Don Lee, founder of Prospera Law, who works directly with startups navigating these decisions every day.
What we’ll cover:
When SAFEs actually make sense…and when they don’t
Common mistakes founders make using SAFEs too casually
When priced equity is the cleaner move earlier than people expect
How investors really look at SAFEs versus equity
The downstream effects founders rarely think about at the time
After that, we’ll open it up for legal + fundraising office hours.Ask anything about:
SAFEs vs. equity for your specific situation
Cleaning up past decisions
How future investors are likely to interpret what you’ve already done
Or anything you’d want to ask a startup lawyer or fundraising advisor but haven’t had a clean forum to do so
This is meant to be practical, candid, and founder-first…not legal theater or a pitch for complexity.If you’re raising, planning to raise, or living with decisions you made earlier, this will be useful.
Register today to secure your spot! 😎
Cheers,
Jason
Thanks a ton to Prospera Law, BX Studio, and Keen
Prospera Law
Prospera Law is a full-service law firm based in Los Angeles. We are trusted advisors to entrepreneurs, venture capital funds and private equity funds, serving as outside general counsel to startup, emerging growth and middle market companies. In addition to corporate, litigation, employment and intellectual property legal matters, we advise our clients on a wide range of transactions, including financing transactions (representing both companies and investors) and mergers & acquisitions (advising sellers and buyers).
Download The DIY Guide for Building the Ultimate Investor Target List:
Download our free DIY Guide HERE
The #1 reason fundraises fail is not connecting with the right investor.
Founders who raise capital speak with over 150 investors to successfully raise capital.
While having great materials and a compelling pitch is important, it's still a numbers game.
To maximize your chances, a broad target list and warm introductions are essential.
Use our DIY Guide to build a target lists to set yourself up for success.
What's included:
Step-by-step instructions for building an investor list
Templates to get you started quickly
Walkthrough videos of how to use search tools